According to Forbes magazine's annual approximations of NHL franchise values, the values of Canadian NHL franchises has surged since the league penned a new deal with its players and the Canadian dollar strengthened.
Two of Canada's "Original Six" franchises, the Toronto Maple Leafs and the Montreal Canadiens, each went up in value 18 per cent.
Here is what I don'y understand, how is it that a city that has not won a Stanley Cup in my lifetime has seen its franchise value go from $280 million to $332 million -- making it the league's most valuable -- while the Habs who have won Stanley Cups like the Liberal Party used to win elections is only valued at $230 million?
I mean, the Leafs didn't even make the playoffs last year (again) while the Habs were eliminated in the playoffs by the Carolina Hurricanes, who went on to win the Stanley Cup.
3 comments:
I blame the separatists. The two referendums were a drain on the economic power and human capital of Montreal. Much of that influence moved to Toronto, creating a wealthier market.
As part of that brain-drain, I've watched in amazement the devotion that Leaf fans have to their crappy franchise, and their lemming-like instincts to pay good money to support a mediocre team.
Committed, dumb fans. The Leafs recipe for $$$ success.
Top 3 Reasons from someone who knows nothing about hockey:
1) Toronto is a bigger media market than Montréal, thus higher royalties
2) Toronto has a higher concentration of corporate head-offices, thus more boxes going for higher prices (plus more people per capita who need to take their clients somewhere interesting after work)
3) I have no actual proof of this, but I think tickets cost more in TO than MTL, with a similar if not larger arena, thus it is in part an economies of scale thing.
Like I said, I know not of what I talk, so give me a few points if I am even in the ballpark! :-)
Larger market / corporate interest is key. That's why Hamilton will never get it's own NHL franchise. Not only will it eat into TO's revenues, it'll negatively impact the Buffalo market as well. Further, that is the reason why the Leafs will remain mediocre. The owners have realized that even with a poor product, they sell out every game. Lends truth to the quote "there's a sucker born every minute..."
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